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U.S. service sector growth ebbs in September

A demolition worker dismantles a restaurant sign and facade in Rockville, Maryland September 15, 2015. REUTERS/Gary Cameron

NEW YORK, (Reuters) - The pace of growth in the U.S. services sector decelerated in September as new orders and business activity slowed, according to an industry report released on Monday.

The Institute for Supply Management said its services index fell to 56.9 last month from 59 in August. The reading fell shy of economists' forecasts for 57.5, according to a Reuters survey.

A reading above 50 indicates expansion in the sector.

(Reporting By David Gaffen; Editing by Chizu Nomiyama)